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small businesses are important part of the economy. california leads the nation in the number of failures they're feeling a lot of pressure now because of competition from the malls and also, from the uncertainty of tax rates. this boutique owner usually has two sales people to help. not this year, she's working because she may be facing a spike in taxes in the new year. the so called fiscal cliff. about half of the small businesses pay taxes at a 35% rate. so without a tax deal, rates could spike to 42% n addition she is postponing orders for bring merchandise. >> we've had to small a bunch of stouf make sure it's going to be okay for next season. >> did that hurt you?. >> absolutely. bigger stores able to carry out the lines you know they get them earlier than we do. we follow them out so, long. >> small business owners worried whether they'll northbound business next year. this is one of them. >> you don't want to lose it all after 30 years in business. that would be a terrible thing. there is a lot of small business owners are single. >> small business owners feeling the s
. >> thank you so much. election night is huge for california schools and for state democrats as well. voter as proved the school plan, prop 30 providing school funding through a small increase increase for richest californians. the governor said it's passing was key to the health of the state. >> we joined together as californians first in a resounding victory for education and fiscal integrity. >> california voters elected enough democrats that the party now has a super majority. that means democrats have the two-thirds vote necessary to raise taxes if they want to. but our political analyst tells us that is still unlikely that some testimonies will be likely to vote for higher taxs.. >> if they want to let the voters decide on taxing measures or spending measure that's probably the way they're going to go. i doubt whether they votes to pass taxes within their own ranks. >> the governor said he'll help make sure legislature does not overindulge. >> within hours of prop 30 passing the california state university system made a major announcement giving stud yengts something they were not exp
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